Which One of the Following Statements Is True

question 122

Multiple Choice

Which one of the following statements is true?

• A)The current yield on a par value bond will exceed the bond's yield to maturity.
• B)The yield to maturity on a premium bond exceeds the bond's coupon rate.
• C)The current yield on a premium bond is equal to the bond's coupon rate.
• D)A premium bond has a current yield that exceeds the bond's coupon rate.
• E)A discount bond has a coupon rate that is less than the bond's yield to maturity.

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